Do you throw any events or parties during the Christmas period, and how does this impact your insurance?

By Alison Waters – Commercial Placement Manager.

Bright lights, party music, a free bar… the annual Christmas party season is now in full swing and what better way for your staff to enjoy the start of the festive period than by letting their hair down and having a great time?

But the reality of the morning after can often bring more challenges than just a sore head for companies to deal with.  Inappropriate behaviour including unwanted attention, physical altercations and intoxicated workers behaving recklessly are commonplace, even expected at the annual party.  So as a business owner, what can you do to make sure that your festive celebrations go off with a bang, rather than go up in smoke?

A survey by reputation management company Igniyte Limited in 2022[1], involving research of over 1,000 UK workers, found that 1 in 5 employees admitted to being involved in a heated argument or physical altercation with a colleague at a Christmas party. 

10% admitted to having behaved inappropriately or regretted something they had said or done, with a similar percentage having been or worked alongside someone who had been sacked or suspended from work following an incident.

A staggering 38% have flirted with or kissed a colleague at a Christmas party, and 20% have felt a negative impact on their career as a result of their behaviour. Lastly, 4% say they have been the subject of disciplinary action from their HR team as a result of their inappropriate behaviour, committing sexual harassment or causing acts of discrimination in the aftermath of the party.

If we take an average firm with 50 workers, then that’s essentially a serious incident taking place at one in two Christmas parties, which could have a significant impact on your company’s reputation.

So without wishing to sound like Scrooge, is it really worth it?

In the same research, Igniyte found that more than one in 10 workers surveyed in 2022 said they would deliberately not attend a Christmas party due to their colleagues’ behaviour, and over 60% stated they would purposefully be trying to not drink too much because they are afraid they will do something they might later end up regretting.

So has the traditional Christmas party had its day? The answer is maybe.

Perhaps it’s time to re-think your strategy around the annual Christmas party.

Consider the type of event.  Does it have to be a party on a Friday night, or would your workforce prefer an activity or different type of daytime event? 

Have you asked your staff what they would like?  It might be worth canvassing opinions from your workforce before committing the budget, to understand whether they actually still see the value in the traditional party.  Looking at other options may also provide an opportunity to be more inclusive.

As responsible employers, what steps can you take to make sure everyone has a good time, whilst ensuring that you safeguard your employees and your reputation is undamaged?

• Set clear standards of behaviour.  In the week leading up to your party or event, make it clear to your employees what will and will not be tolerated. 
• Set a dress code that is fitting with the type of event you are holding. 
• Remind your staff of your policies around violence, harassment and discrimination and the consequences of failing to follow them.
• If you’re having a party, then consider whether a free bar is a good idea.  Unlimited drinking will inevitably result in problems later in the evening.  Offering staff a set number of free drinks or limiting the bar tab may help to keep control of the quantity of alcohol being consumed.
• Provision of food can help to mitigate the effects of alcohol, so whilst a sit-down meal may not be an option, ensuring there is a sufficient amount of food available can often help.
• Be inclusive to all and respect individuals’ choices.  If you have staff with specific dietary needs, or who choose not to drink, then make sure you cater for them as well.
• Hold your event at a neutral venue which is accessible and safe to travel to.  Consider whether you are able to organise transport to and from the venue, particularly if it is out of town or in a remote location.  This will not only ensure that your staff aren’t walking distances alone or whilst intoxicated, but it will also eliminate any temptation to drive. 

Does our insurance protect us if things do go wrong?

You have a duty of care to your employees, so you do need to consider their wellbeing, even away from your normal working environment. 

Make sure, whatever you decide to do, that a sensible risk assessment is undertaken, particularly if you are taking your staff on an activity day.  Check with your insurance provider that any high-risk activities are noted, and make sure you only work with organised venues and activity centres that ensure the correct safety measures are in place and hold appropriate insurance.

If you are organising and leading an event yourselves for your staff where there is an increased risk of injury, then you should speak to your broker about the Employers’ Liability risks, to make sure cover is in place.

Consider any legal risks.  Many businesses do hold Management Liability cover (sometimes known as Directors’ & Officers’ Liability insurance), which will support a defence in the event that you are the subject of allegations such as discrimination and sexual harassment.  Some policies will provide cover for dealing with costs of any reputational damage.  If you don’t already hold this cover, then it’s strongly recommended that you consider adding this to your insurances.

Everyone wants to enjoy their Christmas celebrations and reward their staff for another successful year.  Following these steps should help make your Christmas celebrations far better for everyone and reduce the risks to you as a business owner.  If you need to talk to a broker about Employers’ Liability or Management Liability insurance cover, then we can help.